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HomeMy WebLinkAboutConsider Adoption of Resolution No 2024-50 - in Opposition t �s1TiNCT 2000 Main Street, ? , ;°?r Huntingt9o2n64eeach,CA City of Huntington Beach 9'- APPROVED 4-0-3 (MOSER,BOLTON, KALMICK-NO) File#: 24-678 MEETING DATE: 10/1/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Eric G. Parra, Interim City Manager VIA: Travis K. Hopkins, Assistant City Manager PREPARED BY: Shannon Levin, Council Policy Analyst Subiect: Consider adoption of Resolution No. 2024-50 in Opposition to the Statewide Ballot Proposition 33, the Local Government Rent Control Expansion Act, as Recommended by the Intergovernmental Relations Committee (IRC) Statement of Issue: On September 18, 2024, the Intergovernmental Relations Committee (IRC), comprised of Mayor Gracey Van Der Mark, Mayor Pro Tem Pat Burns, and Council Member Tony Strickland, discussed legislative items with relevance to Huntington Beach. Following discussion, the IRC chose to take a position on a statewide ballot proposition, which is presented to the City Council for consideration. Financial Impact: Not applicable. Recommended Action: A) Adopt Resolution No. 2024-50, "A Resolution of the City Council of the City of Huntington Beach in Opposition to Proposition 33, the Local Government Rent Control Expansion Act," which will set aside Resolution Nos. 4344 and 2024-23. Alternative Action(s): Do not approve, and direct staff accordingly. Analysis: Proposition 33 - The Local Government Rent Control Expansion Act, which expands local governments' authority to enact rent control on residential property is an Initiative Statute to be considered by the voters at the November 2024 election. Current state law, known as the Costa-Hawkins Rental Housing Act of 1995, limits the use of rent control in California. Cities cannot set rent control on single-family homes or apartments built after 1995, providing landlords the freedom to set their own rental rates when a tenant moves. If Proposition 33 passes, it would eliminate State limitations for cities and counties to maintain, enact, City of Huntington Beach Page 1 of 2 Printed on 9/25/2024 powered by Legistarn" 52 File#: 24-678 MEETING DATE: 10/1/2024 or expand residential rent control ordinances, allowing rent control on any type of housing - including single-family homes and new apartments, and for new tenants. According to the State's Legislative Analyst's Office, the repeal of Costa-Hawkins could reduce State and local revenues in the high tens of millions of dollars per year over time; and the largest effect would be on property taxes. City of Huntington Beach Charter Section 803 asserts that the City will not enact or enforce rent control. Section 803, Property Rights Protection Measure. a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property. Any such measure is hereby repealed. b) The word "mandates" as used in subsection (a) includes any measure taken by ordinance, resolution, administrative regulation or other action of the City to establish, continue, implement or enforce any control or system of controls on the price or other terms on which real property in the City may be offered, sold, leased, rented, exchanged or otherwise transferred by its owner. The words "real property" as used in subsection (a) refer to any parcel of land or site, either improved or unimproved, on which a dwelling unit or residential accommodation is or may be situated for use as a home, residence or sleeping place. Per the approved City Council Policy Manual, the City Council may take a position with respect to a statewide ballot proposition by setting aside Resolution Nos. 4344 and 2024-23. The Intergovernmental Relations Committee recommends setting aside these Resolutions and adopting Resolution No. 2024-50 opposing Proposition 33. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Non Applicable -Administrative Item Attachment(s): 1. Resolution No. 2024-50 2. Resolution No. 4344 3. Resolution No. 2024-23 City of Huntington Beach Page 2 of 2 Printed on 9/25/2024 powered by Legistar m 53 RESOLUTION NO. 2024-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH IN OPPOSITION TO PROPOSITION 33, THE LOCAL GOVERNMENT RENT CONTROL EXPANSION ACT WHEREAS, Proposition 33 "Expands Local Governments Authority to Enact Rent Control on Residential Property" is an Initiative Statute to be considered by the voters at the November 2024 election; and The California Legislative Analyst has stated that: a. Proposition 33 would repeal the Costa-Hawkins Rental Housing Act of 1995 and law and would prohibit the state from limiting the ability of cities and counties to maintain, enact, or expand residential rent-control ordinances; and b. Fewer homes would be available to rent; and c. The value of rental housing would decline; and d. A decline in the value of rental properties would reduce the amount of property taxes paid by landlords, which would reduce property tax revenues for cities, counties, special districts, and schools; and e. With time,these property tax reductions likely would be at least tens of millions of dollars each year (annually); and f. About half of the reduction would be property tax revenues that would have gone to schools; and g. If local rent control laws expand, local governments could have increased costs,which could range from a few million dollars to tens of millions of dollars annually; and 24-15370/354355 RESOLUTION NO. 2024-50 Proposition 33 would abolish the state's existing ban on vacancy control, which prohibits rental housing providers from adjusting rents to market rates when a tenant moves out. Such a policy leads to property deterioration and stifled investment in housing; and Nearly 60% of California voters twice rejected the same scheme by defeating 2018 Proposition 10, Rental Control on Residential Property; and 2020 Proposition 21, Expands Governments' Authority to Rent Control; and Section 803 of the Huntington Beach City Charter, entitled"Property Rights Protection Measure,"provides that the City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property; and City Council Resolution No. 4344 amended the Council Manual to provide that City Council shall take no stand with respond to any statewide ballot proposition; and City Council Resolution No. 2024-23 approved and adopted the revised Council Manual, which provides in Article IX, section G,that the City Council may not take a position with respect to any statewide ballot proposition, NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. The City Council formally expresses opposition to Proposition 33 "Expands Local Governments' Authority to Enact Rent Control on Residential Property" Initiative Statute.No public funds shall be used in the campaign for or against the measure. 2 J RESOLUTION NO. 2024-50 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 1st day of Oct. , 2024. Mayor REVIEWED A I AP'ROVED INITIATED AND APPROVED Interim City Manager Assistant City Mana er ATTEST; APPROVED AS FORM 6#1111/' g671-4171461hAd City Clerk Ci Attorney p 3 Res. No. 2024-50 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on October 1, 2024 by the following vote: AYES: Burns, Van Der Mark, Strickland, McKeon NOES: None ABSENT: None ABSTAIN: Moser, Bolton, Kalmick City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California City Council/ ACTION AGENDA October 1,2024 Public Financing Authority AB 1234 REPORTING—None OPENNESS IN NEGOTIATION DISCLOSURES - None CITY MANAGER'S REPORT 9. 24-707 Update on Police Department Staffing Report provided by Police Captain Oscar Garcia CITY ATTORNEY'S REPORT 10. 24-694 State v. City of Huntington Beach re Housing Element Report provided by City Attorney Michael Gates CONSENT CALENDAR (Items 11-24) City Clerk 11. 24-688 Approved and Adopted Minutes Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes of September 17, 2024. Approved 7-0 12. 24-689 Received and Filed Monthly Update of Activities for Citizen Boards, Commissions, Committees (BCCs) and Regional Agencies - September 2024 Recommended Action: Receive and File. Approved 7-0 City Manager 13. 24-678 Adopted Resolution No. 2024-50 Opposing Statewide Ballot Proposition 33,the Local Government Rent Control Expansion Act, as recommended by the Intergovernmental Relations Committee (IRC) Recommended Action: Adopt Resolution No. 2024-50, "A Resolution of the City Council of the City of Huntington Beach in Opposition to Proposition 33,the Local Government Rent Control Expansion Act," which will set aside Resolution Nos. 4344 and 2024-23. Approved 4-0-3(Moser, Bolton, Kalmick-Abstain) Minute action to strike Section 1.01.08- Statewide ballot propositions of Resolution 4344, and City Council Manual Section IX- Conflicts of Interest Item G. - Statewide Ballot Propositions adopted via Resolution No. 2024-23, Approved 4-3 (Moser, Bolton, Kalmick-No) Page 4 of 10 CITY COUNCIL MINUTE ACTION October 1,2024 At their regular meeting of October 1,2024,the Huntington Beach City Council approved a minute action to omit/strike the following language in Section 1.01.08-Statewide Ballot Propositions of Resolution No.4344: 1.01.08 Statewide ballot propositions. The City Council shall take no stand, neither pro nor con, with respect to any statewide ballot proposition. (Minute action, 19 April 1976) The motion made by Kalmick,seconded by Strickland carried forward by the following roll call vote: AYES: Burns,Van Der Mark,Strickland, McKeon NOES: Moser, Bolton, Kalmick ABSTAIN: None • City Clerk and 'ex-officio Clerk of the City Council of the City of Huntington Beach, California / / RESOLUTION NO. 2024-50 / / . A RESOLUTION OF THE CITY COUNCIL OF THE / CITY OF HUNTINGTON BEACH IN OPPOSITION TO PROPOSITION/33,THE LOCAL GOVERNMENT.RENT CONTROL EXPANSION ACT 1 WHEREAS,Proposition 33 "Expands Local Governments Aut,ority to Enact Rent fi Control on Residential Property"is an Initiative Statute to be consjdered by the voters at the i November 2024 election; and I The California Legislative Analyst has stated that: a. Proposition 33 would repeal the osta-Hawkins Rental Housing Act of state from li itin the abilityof cities and counties to 1995 and law and. would. prohibit the . g 7 maintain,enact, or expand residential rent-control ordinances; and b. Fewer homes would lie available to rent; and c. The value of ren ahousing l would decline;and d. A decline in he value of rental properties would reduce the amount of property taxes paid by landlords;which would reduce property tax revenues for cities,counties, special districts, and schools• and e. liyi,i.h time,these property tax reductions likely would be at least tens of / millions of dollars ea, year(annually); and f. About half of the reduction would be property tax revenues that would have gone to s ools; and g. If local rent control laws expand,local governments could have increased costs, ich could range from a few million dollars to tens of millions of dollars annually; and 24-15370/354355 RESOLUTION NO:`024-5.0 / Proposition 33 would abolish the state's existing ban on vacancy.control,ywhich prohibits rental housing providers from adjusting rents to marke rates when a tenant,mo tves out. Such a , policy leads to property.deterioration and stifled investi lent in housing; and ,,M Nearly 60%-of California voters twice rejected the same scheme by defeating 2018 i Proposition 10,Rental Control on Residential Property; and 2020'.Proposition 21, Expands 7 Governments' Authority to Rent Control; and 'p Section 803.of the Huntington Beach City Char ei, entitled"Property Rights Protection Measure,''provides that the City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner connection with.the sale, lease, rent, / exchange or other transfer by the.owner of real property; and i City Council Resolution No. 434i4 amended the Council Manual to provide that City Council shall take no stand with respond to any statewide ballot proposition; and:. City Council Resolution o 2024 23 approved and adopted the revised Council.Manual, p� which provides in Article IX,/section G,that the City Council may not take a position with i respect to any statewide ballot proposition, NOW,.THERE SORE,the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. City Council Resolution Nos. 4344 and 202423 are hereby suspended'to allow the ado.ton of.this Resolution only. SECTION 2. The City Council formally expresses opposition to Proposition 33 "Expands Local Governments' Authority to Enact Rent Control on Residential Property" Initi five'Statute.NO public funds shall be used in the campaign for or against the measure. • 2 RESOLUTION NO. 2024-50 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2024. Mayor REVIEWED AND APPROVED INITIATED AND APPROVED Interim City Manager Assistant City Mana er ATTEST: APPROVED AS TO FORM City Clerk City Attorney 3 i Ill RESOLUTION NO. '4344 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF. HUNTINGTON BEACH AMENDING THE COUNCIL. MANUAL BY ADDING THERETO SECTION 1.01.08, STATEWIDE BALLOT PROPOSITIONS, AND SECTION 1.01.09, APPEALS AND CHALLENGES TAKEN BY THE CITY COUNCIL BE IT RESOLVED by the City Council of the City of Huntington Beach that the Council Manual is hereby amended by adding thereto Sections 1.01. 08 and 1.01.09 to read as follows:• __1.01.08 Statewide ballot propositions. The City Council .hall take no stand, ncithcr pro nor con, with rccpcot to any statewide 'ballot .propocition. * (Minute action, 19 Apri- 9..6) *Repealed by Minute Action on October 1, 2024 1.01.09 Council appeals and challenges. Decisions of subordinate bodies, or persons, may be appealed as set out in the following: (a). PARADES: the Council may appeal any decision of the city administrator to issue, deny, suspend or revoke any parade permit (Huntington Beach Municipal Code Section 9.48.230) . (b) ENVIRONMENTAL EVALUATION: the Council, or any member thereof, may appeal any decision or determination of th en- vironmental review committee or department of environmental re- sources (Huntington Beach Ordinance Code Section 9726) . (c) MISCELLANEOUS PROVISIONS: any member of the Council may appeal to the planning commission any decision of the board of zoning adjustments to revoke or approve an application for administrative review to permit the operation of a home for the. care of nonrelated persons (Huntington Beach Ordinance Code Section 9730 .27.7) . (d) SIGN CODE: the Council or any member thereof may ap- peal any decision or requirement of the board of zoning adjust- ments or planning commission to revoke or suspend a sign permit (Huntington Beach Ordinance Code Section 9761.16.5) . (e) BOARD OF ZONING ADJUSTMENTS: the City Council or any member thereof may appeal any decision or requirement of the board of zoning adjustments or planning commissfon to grant ..r 1.DPB:ahb fV or deny applications for conditional exceptions or use permits (Huntington Beach Ordinance Code Section 9815.5) . (f) CONDITIONAL USE PERMITS: the City Council or any member thereof may appeal a decision of the planning commission to grant, modify or deny an application for a conditional use permit (Huntington Beach Ordinance Code Section 9842) . (g) APPEAL: the City Council or any member thereof may appeal any decision or requirement of the planning commission (Huntington Beach Ordinance Code Section 9881) . (h) SITE PLAN: the City Council or any member thereof may appeal or challenge any decision, determination or require- ment of the planning commission to approve conditionally or deny an application for site plan (Huntington Beach Ordinance Code Section 9892) . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at an adjourned regular meeting thereof held on the 26th day of October, . 1976. M -LIA41444 ay ATTEST: 141" Igt-APPROVED AS TO FORM: ae:4;442 ' 0 City Clerk City At orney APPROVED AS TO CONTENT AND AS INITIATING DEPARTMENT: • tele444, • 4444461 Mayor 2. 58 Res. No.4344 STATE OF CALIFORNIA ) COUNTY OF ORANGE . ) se: CITY OF HUNTINGTON BEACH ) III I, ALICIA M. WENTWORTH, the duly elected, qualified City i Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular'adjonr ed meeting thereof held on the : :26th day of October , 1976 , by the following vote AYES: Councilmen:. Bartlett, Pattinson, Gibbs, Siebert, Wieder G - NOES: Councilmen: III None ABSENT: Councilmen: . Coen, Shenkman .//i4;t..."60/ 0,11;1/7 4 ...Zea. Z9 -74-"L„/ City Clerk and ex-officio Clerk of the City Council of. the City of Huntington Beach, California • III 59 RESOLUTION NO. 2024-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A REVISED CITY COUNCIL MANUAL WHEREAS, on March 18, 2019, the City Council approved a revised Council Manual by the adoption of Resolution No. 2019-09. Amendments to the Council Manual have been approved by resolution, NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows: 1. That the revised Council Manual for the City of Huntington Beach, a copy of which is attached hereto as Exhibit"A,"is hereby adopted and approved.* 2. That this Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 4th day of dale , 2024. lob 4,t; 6-1—V.-- Mayor REVIEWE PROVED INITIATED AND APPROVED o.t__ City Manager ssistant City Manag r APPROVED AS 0 FORM ity Attorney c(j( * Section IX-G Statewide Ballot Propo itions repealed by Minute Action on 1st day of October, 2024. 24-14558/339337 Moore, Tania From: city.manager@surfcity-hb.org Sent: Wednesday, October 2, 2024 10:56 AM To: supplementalcomm@surfcity-hb.org Subject: FW: Adopt Resolution 2024-50 and Oppose Prop 33 Attachments: HBCityCouncil- Reso2024-50.pdf From: Collin Powers<Collin@ocrealtors.org> Sent: Tuesday, October 1, 2024 5:04 PM To: city.manager@surfcity-hb.org Cc: Van Der Mark, Gracey<Gracey.VanDerMark@surfcity-hb.org>; Burns, Pat<Pat.Burns@surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton@surfcity-hb.org>; Kalmick, Dan <Dan.Kalmick@surfcity-hb.org>; McKeon, Casey <Casey.McKeon@surfcity-hb.org>; Moser, Natalie<Natalie.Moser@surfcity-hb.org>; Strickland, Tony <Tony.Strickland@surfcity-hb.org> Subject:Adopt Resolution 2024-50 and Oppose Prop 33 You don't often get email from collinPocrealtors.org. Learn why this is important To whom it may concern, My name is Collin Powers, and I am the Government Affairs Director at the Orange County Association of REALTORS®. Please refer to the attached letter for our position on tonight's city council meeting(10-1- 24) agenda item 13, 24-678 regarding considering the adoption of Resolution 2024-50. Thank you for your time. Best, Collin Powers Collin Powers Government Affairs Director, RCE Orange County REALTORS° 25552 La Paz Road Laguna Hills, CA 92653 714-470-4535 collinOCRealtors.org 1 ORANGE COUNTY REALTORS October 1,2024 Mayor Van Der Mark Huntington Beach City Council 2000 Main Street Huntington Beach, CA 92648 RE: Adopt Resolution 2024-50 and Oppose Proposition 33 Dear Mayor Van Der Mark and Honorable City Council Members, I am writing on behalf of Orange County REALTORS®, the largest local association of real estate professionals in California, with offices in Fountain Valley and Laguna Hills. Our association represents nearly 15,000 members who serve both home buyers and sellers, as well as the broader community of homeowners. We respectfully urge the City Council to adopt Resolution 2024-50 and oppose Proposition 33. This proposition seeks to expand rent control, which would place additional burdens on property owners by making it harder to cover maintenance costs and infringe on homeowner rights. In an already strained housing market, Proposition 33 would exacerbate these challenges. By opposing this measure and adopting Resolution 2024-50, the City Council would take a crucial step toward protecting property rights and promoting thoughtful housing solutions for our community and the state. Thank you for your time and consideration on this important issue. Sincerely, Collin Powers Government Affairs Director Orange CountyyRRREEALTORS® 25552 La Paz Road,Laguna Hilts,CA 92653 1949-586-6800 I fax:949-586-0382 I www.ocrealtors.org 10540 Talbert Avenue,Suite 225.West Building,Fountain Valley,CA 92708 1714-375.9313 I fax:714-375-9322 I www,ocrealtors.org